Pact eases sting of layoffs; All 686 workers keep wages, benefits until June (comment on this story) 0

Union leaders and representatives from Xstrata negotiated into early Friday morning,

and emerged with a deal to help lessen the financial hardship of laid-off workers.

Under the agreement, the 686 Xstrata employees laid off Monday, will be paid full wages for 16 weeks. The company will also provide full benefits through that time.

"(The deal) will minimize the impact of the layoffs on a lot of our workers," said Richard Paquin of the Mine, Mill and Smelter Workers' Union Local 598/CAW. "It doesn't bring back as many jobs as we had hoped, but it does offer our members financial relief so they can actually plan their family lives and carry on with their own lives."

After the 16-week period ends June 3, workers will be eligible for severance packages and EI.

In a statement released Friday afternoon, Xstrata acknowledged the need to assist workers to mitigate the effects of job losses.

"We recognize the impact the restructuring is having on our employees and their families," said Marc Boissonneault, vice-president of Xstrata Nickel Sudbury operations.

While the extended wage period does provide workers with more time to prepare for the job loss, union officials are not entirely satisfied.

Mine Mill Local 598/CAW president, Dwight Harper, said the union believes Xstrata is still in breach of its agreement not to lay off workers for three years. As a result, the union plans to "seek restitution" from the federal government for the time between June 4 and the agreement end date, July 25, he said.

"We are going to try and get what we believe is owning to the people," he said.

He added, the company has been unwavering in its refusal to pay wages for the extra month and a half.

Sudbury MP Glenn Thibeault and Nickel Belt MP Claude Gravelle, have pledged to continue lobbying the government for more assistance.

"The next hurdle in this process will be to ensure that these workers are compensated for the seven weeks this settlement falls short of the July 26 Industry Canada agreement. Glenn and I will be calling on this government to assume this responsibility," Gravelle said.

The union has also announced plans to re-offer early retirement packages to 27 Xstrata employees. The company has agreed to fill any vacancies that result with people who are part of this week's layoffs. Decisions will be made based on seniority, said Paquin.

In addition to potential job vacancies through retirement offers, Xstrata has agreed to recall laid off workers for future jobs in the Nickel Rim project. Those workers will be used instead of contractors, said Paquin.

"It's hard to say how many, but estimated between 20 to 60 jobs depending on the task," he added. Those jobs may be available in September.

On Thursday night, the company officially rejected the union's bid for a job-sharing program. The proposal would have involved current employees accepting a four day work week to accommodate more staff. It was expected that EI would top up their salaries.

"I was disappointed to say the least," said Harper. "My main drive was to get as many people back to work as possible and this could have gotten 100 plus people back to work."

Although there are a few small details to be announced, Harper said the union will not be participating in further discussions with Xstrata.

Next week, federal NDP officials, including Leader Jack Layton, have scheduled a town hall meeting in Sudbury to discuss the worsening economic situation in the city with workers and community leaders.